David Edwards
U.S. asset manager Canary Capital has formally submitted a proposal to launch an exchange-traded fund (ETF) tied to the Tron blockchain network’s native token, TRX, according to recent regulatory filings.
Distinctively, the proposed fund aims not only to hold spot TRX but also to stake a portion of its holdings to generate additional yield. According to data from Stakingrewards.com, staking TRX currently offers an annualized yield of approximately 4.5%. CoinMarketCap estimates the total market capitalization of TRX at over $22 billion.
The application marks the latest in a wave of filings for cryptocurrency-focused ETFs, as U.S. issuers seek to expand beyond Bitcoin and Ethereum exposure. However, Canary’s approach stands out, as it requests staking privileges in its initial filing. By contrast, ETF proposals for Ethereum, such as those pending regulatory review, have only sought staking permissions post-approval for spot holdings.
Tron, operating as a proof-of-stake blockchain, was founded by entrepreneur Justin Sun, who also owns Rainberry Inc., the company behind the BitTorrent protocol. Sun has faced legal challenges, notably a March 2023 lawsuit filed by the U.S. Securities and Exchange Commission (SEC), alleging fraudulent price inflation of TRX and BitTorrent’s BTT token. As of February 2025, settlement discussions between Sun and the SEC are ongoing.
The TRX ETF filing follows a broader trend, often referred to as the “altcoin ETF season,” in which asset managers race to introduce funds linked to alternative cryptocurrencies. Under President Donald Trump’s administration, U.S. regulators have acknowledged dozens of new crypto investment product filings, including proposals for ETFs based on Solana (SOL) and memecoins like Official Trump (TRUMP).
Since early 2024, Canary Capital has aggressively expanded its crypto ETF roster, proposing funds tied to assets such as Litecoin (LTC), XRP (XRP), Hedera (HBAR), Axelar (AXL), Pengu (PENGU), and Sui (SUI).
